{"id":129802,"date":"2021-08-30T20:28:59","date_gmt":"2021-08-30T14:58:59","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=129802"},"modified":"2021-09-01T18:06:38","modified_gmt":"2021-09-01T12:36:38","slug":"goi-plus-india-inc-on-lack-of-trust-b-w-govt-businesses","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/goi-plus-india-inc-on-lack-of-trust-b-w-govt-businesses\/","title":{"rendered":"GoI Plus India Inc (On lack of trust b\/w govt & businesses)"},"content":{"rendered":"

Source: <\/strong>Times of India<\/a><\/span><\/p>\n

Relevance: <\/strong>Industry-Government partnership<\/p>\n

Synopsis: <\/strong>No nation became prosperous without trust between government and business. A look at some such events that indicate lack of trust.<\/p>\n

Context<\/strong><\/h5>\n

In the past few weeks, a series of events have raised the question of trust between government and business. It brought back unhappy memories of the Licence Raj.<\/p>\n

What are those events?<\/strong><\/h5>\n
    \n
  1. Present signs of distrust came in late July with the failure of the Indian Railways to attract a single private player to run 150 trains.<\/strong> The reform failed because of a lack of trust. Bidders had repeatedly insisted on an independent regulator to create a level playing field, flexibility in timings, routes and a fair exit. They didn\u2019t trust the current regulator. However, the railways were not ready to heed to their demands.<\/li>\n
  2. Second, govt released draft e-commerce rules<\/strong> and created uncertainty among foreign and Indian investors. E-commerce offers such hope to thousands of India\u2019s small businesses of entering the world market via global e-commerce. It is India\u2019s ticket to massive exports and millions of jobs.<\/li>\n
  3. Third, differences<\/strong> came out in the open between India\u2019s outward looking businesses<\/strong>, who want to integrate with global chains, versus the government\u2019s inward looking atmanirbhar policy<\/strong>. In an intervention at a CII forum, the commerce minister reportedly said Indian industry doesn\u2019t always act in national interest. He reportedly censured business persons of structuring foreign investments against the spirit of the rules.<\/li>\n
  4. Fourth, the commerce ministry announced an online essay competition for students. One of the two topics was \u2018Import substitution: Atmanirbhar ki Aur\u2019<\/strong>. Surely, it was a mistake to revive a discredited policy of the 1960s that did so much harm to India\u2019s exports.<\/li>\n
  5. Fifth, Infosys was \u201csummoned\u201d by the finance ministry<\/strong> to explain failures with income tax e-filing. It could have been sorted out quietly. The vendor could be penalised for its faults without public messaging.<\/li>\n
  6. Other issues that hamper Industry-Government connect\n